TCS Demonstrates Operational Resilience While Positioning for Growth Recovery.
Q1 CC Revenue Degrows 6.3% YoY
Life Sciences (+13.8% YoY) Shines Amid Widespread Declines
Industry-leading Operating Margin: 23.6%
Q1 Total Contract Value:
Highlights of the Quarter Ended
Revenue at
Constant Currency revenue growth: -6.3% YoY
Net Income at
Operating Margin at 23.6%;
Strong Cash Conversion: Operating Cash Flow at 132.6% of Net Income
Consolidated headcount: 443,676 | Women in the workforce: 36.2%
353K+ employees trained in new technologies
Industry-leading talent retention: IT Services attrition rate at 11.1% LTM
Dividend per share: ' 5.00
Record date 17/07/2020; Payment date
Commenting on the Q1 performance,
He added, 'After an initial period of disruption, customers have now stabilized their operations and are now embarking on new beginnings to adapt and thrive in a post-pandemic world. We are seeing many customers focus on front-end transformation, resulting in significant traction for our products and services. The other big investment themes are around driving operational resilience, adaptability and optimization. We signed several large core transformation programs encompassing operations, applications, cloud and cybersecurity. Our Machine First approach, delivered using the Secure Borderless Workspaces model is helping us win such opportunities. Very encouragingly, we saw customers launch new business transformation programs or restart deferred programs during the quarter. This is indicative of business confidence returning in pockets.'
N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said,'The location-independent way of working is gaining traction. Our customers are quite comfortable integrating the remote workforce, using new collaborative technologies to get work done. Our Secure Borderless Workspaces model has been institutionalized. We have been able to seamlessly adapt and extend it to prospect for new business, sell, contract and execute programs.'
He added, 'The resilience and adaptability that we have shown in supporting all our customers over the last three months bodes well for our relative competitiveness going forward. Despite the continued uncertainty and weakness in all major economies, we have had very healthy deal closures and a strong pipeline. We will stay focused on helping our customers overcome the current challenges and prepare for the growth ahead.'
V Ramakrishnan, Chief Financial Officer, said, 'We have taken a supportive approach to employees and vendors, and used other efficiency levers to limit the impact of the sharp revenue decline during the quarter, and still delivered an industry-leading operating margin. Disciplined execution resulted in superior cash conversion and a strong cash balance that positions us very well to weather the downturn.'
IFRS Financial Statements
Consolidated Statements of Comprehensive Income
For the three-month periods ended
(In millions of USD, except per share data)
Three-month period ended
Three-month period ended
Revenue
5,485
5,059
Cost of revenue
3,265
3,065
Gross margin
2,220
1,994
SG & A expenses
895
800
Operating income
1,325
1,194
Other income (expense), net
203
60
Income before income taxes
1,528
1,254
Income taxes
357
324
Income after income taxes
1,171
930
Minority interest
3
5
Net income
1,168
925
Earnings per share in $
0.31
0.25
Consolidated Statements of Financial Position
As of
(In millions of USD)
As of
As of
Assets
Property and equipment
1,583
1,575
Right-of-use Assets
1,060
1,061
Intangible assets and
547
556
Accounts Receivable
4,057
4,024
Unbilled Revenues
1,398
1,259
Investments
3,494
3,936
Cash and Cash equivalents
1,146
1,291
Other current assets
1,976
2,369
Other non current assets
1,048
987
Total Assets
16,309
17,058
Shareholders' Funds
11,433
12,154
Other current liabilities
3,587
3,623
Other non-current liabilities
1,204
1,195
Minority Interest
85
86
Total Liabilities
16,309
17,058
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